The President lashed out at Republicans during his speech at the National Action Network’s annual Martin Luther King Jr. Day Breakfast on Monday, calling them “fiscally insane.”
President Joe Biden remarked, “We’re making this success at the same time, decreasing the deficit,” as reported by The Hill. Again, would you like to discuss the Democrat’s extravagant spending habits? Which is truer? This past year, I reduced the deficit by $350 billion. On top of that, this year? A reduction of almost a trillion dollars in the national debt has been achieved. It’s necessary to pay attention to the facts here. We expect hundreds of billions to be slashed over the next decade. Those people are utterly insane in terms of their fiscal sense of reality. They have yet to quit to get it.
According to the Office of Management and Budget projections, the budget deficit will decrease from $3.1 trillion in FY2020 to $2.7 trillion in FY2021 and then to $1.4 trillion in FY2022. While the current budget deficit of $1.4 trillion is far more significant than shortfalls reported in the years preceding the lockdowns, the chief executive failed to mention that these reductions followed stimulus packages enacted by parliament in response to the lockdown-induced recession.
As opposed to Biden’s claim that “hundreds of billions” will be erased from the debt during the following decade, the Committee for a Responsible Federal Budget calculated that his spending proposals would add more than $4.8 trillion to the deficit between 2021 and 2031. A $2.5 trillion debt is to be predicted if the American Rescue Plan and a stimulus package aren’t enacted soon after Joe Biden leaves office.
Biden has often claimed that the public has benefited from his policies and actions.
As I have been in power, I have seen many changes. During his presidency, the deficit has reduced annually. And I just signed a law that will lead to even more significant cuts in the decades. The Republicans in Congress have reaffirmed their intention to dramatically increase the federal deficit. GOP leaders have pledged to do everything they can to extend the Trump tax cuts for at least two more years.
The FY2021 budget deficit was “the second biggest in history,” according to the Government Accountability Office. According to the accounting company, the historically significant deficiencies “were linked largely to the economic disruptions generated by COVID,” The government had to spend more to help the country recover from the pandemic.
The Bipartisan Policy Center estimated that the omnibus spending measure’s nearly 10% increase in discretionary spending would impact the deficit in the upcoming fiscal year 2023. As interest rates rise in response to the Federal Reserve’s attempts to limit inflationary pressures, the debt will almost certainly increase.
The Republican-controlled House has promised to reassess spending priorities after taking office. House Ways and Means Committee Chairman Jason Smith (R-MO) delivered a message to The Daily Wire in which he expressed his displeasure with the deficit spending of the Biden administration.
He said that “we have seen America’s debt crisis escalate dramatically” due to President Biden and his Democrat colleagues in Congress increasing spending by $10 trillion over the previous two years. To get the U.S. economy back on track and meet our debt obligations, I urge President Biden and Majority Leader Schumer to work with the Republicans in the House, as has been done in the past. The American people need both honest leadership and a prosperous economy.